AT&T edges up despite debt downgrade by Fitch

NEW YORK (CBS.MW) -- Shares of Dow industrials component AT&T
T, +0.09%
are tacking on 13 cents, or 0.7 percent, to $19.60 despite having its debt rating cut Fitch Ratings to "BBB" from "BBB+." Fitch said the outlook on approximately $18.1 billion of debt is still "negative." The debt rating agency said it expects the telecom giant's business services division to be negatively impacted by the continued lack of a spending recovery. Fitch doesn't expect a recovery until "well into" 2004. In addition, Fitch feels operating margins will be pressured by migration of AT&T's long distance voice volume to wholesale from retail.

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